David Reynolds, an analyst from Davy Research, described the accounting restatement as “an oversight”, adding that it is “probably not a positive in terms of investor confidence”.
Mrs Gustafsson continued in Thursday’s results call: “We have a proven business model, which is generating cash. Today’s results are yet another example of our strong performance. Being listed on the London Stock Exchange is exactly where we want to be right now”.
In a statement to investors the company said: “Darktrace has determined that $3.8m of revenue it had been recognising in [financial year] 2022, including a portion recognised and reported in its unaudited [first half of] 2022 results, was related to prior periods and should instead be recognised in FY 2021.”
Darktrace’s share price crashed when markets opened on Thursday, plunging 30pc in the first 20 minutes of trading. The August news of Thoma Bravo’s interest had it soaring by 25pc and breaking the £5 mark. The stock closed at £5.04 on Wednesday but was down to £3.46 at midday on Thursday, below the level expected by JP Morgan Cazenove analysts.
CCS Insight research director Bola Rotibi said: “If one looks at some of the commentary surrounding both the deal and Darktrace, there are critics who felt that the company had been overstating its addressable client base which may have been more of an issue under closer scrutiny.”
Thoma Bravo declined to comment.
Tech industry sources have previously complained of Darktrace’s high pressure sales operation, described by some as “pushy” even when compared with market rivals in the highly competitive world of cyber security.
Market analyst Michael Hewson of CMC Capital Markets told the Telegraph: “With the shares already well below their post IPO peaks of last year there is a sizeable split amongst investors as to whether the company can live up to expectations of future customer and recurring revenue growth.
“This means that today’s full year results will likely get lost in the noise of this morning’s announcement.”
Earlier this year, the High Court ruled Mr Lynch together with Autonomy’s accounting chief had committed fraud. Mr Lynch intends to appeal. He is also contesting criminal charges in the US and an extradition attempt from American prosecutors.
